I have one client whose is retial business as well as some has job work business. He maintain books of accounts.His net profit comes more than 8% when included job work and discount income which is credited to profit & loss account. But it comes less than 8% when excluded job work & discount inccome. What is right way for measuing 8% of gross turnover/receipts.
05 July 2011
You have to take into consideration all income from that particular business and if the turn over is below the limit as fixed u/s 44AB then the net profit should not be less then 8%. If by including the job work and discount it comes to 8% then file your return on the basis of 8% or more and pay the taxes accordingly.
Your client is doing job work for the same business for which he is doing the retail this means it is the same nature of business and discount is also earned from the very business.
CAclubindia
